Why billionaire Elumelu is interested in youths

NAIROBI, KENYA: Africa’s billionaire Tony Elumelu has challenged the government to provide enabling environment to help youths realise their business dreams.

Elumelu who is also the chairman of United Bank of Africa said he is impressed by the growing number of young entrepreneurs in Kenya and called on the government to consider coming up with enabling policies to enable segment of population grow.

“I have seen when interacting with the young entrepreneurs that they have a lot of ideas, energetic, hardworking and indeed want to succeed. What they need is support.,” he said.

“They need an enabling ecosystem in areas of ICT, capital access that will help them succeed,” he added.

Elumelu said he was impressed by the Nairobi Securities Exchange (NSE) effort on market classification which allows listing of SMEs with as little as $100,000 (Sh10 million).

Launched in 2013, NSE’s Growth Enterprise Market Segment enables Small and medium sized companies list and even raise capital at the NSE.

SMEs need to among others be registered, have Sh10 million minimum capital and no profitability record is required.

The demand for the new trading floor has been high among the SMEs that are seeking new capital injection to expand and meeting the rising demand in the expanded East Africa Community Market.

Through the market, the firms are able to raise substantial initial and ongoing capital, whilst also benefiting from increased profile and liquidity, within a regulatory environment designed specifically to meet their needs.

“That is the kind of ecosystem we want to develop these young Africans. The youths hold opportunity for our continent,” said Elumelu.

Tony Elumelu who was speaking in Nairobi recently also visited President Uhuru Kenyatta in State House. He is the chairman of United Bank of Africa (UBA) which has footprint in 20 African Countries and also has presence in France (Paris), London, and New York.

He serves in the advisory board of Washington Based Wilson center, a member of the global advisory council of Havard Kennedy School Center for Public leadership, and also a member of the World Economic Forum Community of Chairmen.

His Foundation (Tony Elumelu Foundation) supports entrepreneurs across continent and the number of entrepreneurs from Kenya has been rising day by day.

In 2018, about 37 Kenyans made it to the fourth cycle funding programme where more than 150,000 Africans from 114 countries worldwide applied to join.

One has to be innovative with bankable business idea which are also feasible and financially scalable to benefit from mentorship and funding of up to Sh500,000.

Kenya has had over 200 entrepreneurs who have benefited from the grant. There has been quiet an improvement this year compared to other years and Youth Enterprise Development Fund was applauded by TEF for mobilising entrepreneurs to apply for the 2018 cohort. “The number and quality of applicants 151 000 in total, was outstanding – it illustrates the strength and depth of entrepreneurial promise and commitment on our continent,” said TEF Founder, Tony O. Elumelu.

Selection is never easy, and we profoundly regret that we cannot help all. Our partnerships with the Red Cross, UNDP and Indorama, alongside ongoing discussions with other international organizations, reflect the growing global recognition of what we have known all along - that entrepreneurship is the most effective path to sustainable development on our continent and our progamme is the model to follow," he added.

There was a near 50-50 split between male and female an applications reflecting the entrepreneurial ambition of Africa’s women. Agriculture was the leading sector among selected entrepreneurs at 30.5 per cent, followed by technology (10.5percent) and education and training (9 percent).